Tag: Startup Services in Delhi

Basics For Incorporating A Startup

Now that you have understood the basics of CFO Services for Startups and the Payroll Services and the advantages of payroll for startups, our blog 3 in the series is all about Incorporating a startup, the options and categorization as sanctioned by the Ministry of Corporate Affairs.

To help you understand the requirements, following are the types of Incorporation as laid down by the Ministry of Corporate Affairs and other government authorities in some cases. Anyone who is interested in Incorporating a Startup can choose to launch business from the following categories:

1. One person Company

Anyone can incorporate “one person company” as a corporate body. He or she is only one entitled shareholder and Director of the company. The pre-conditions for one person company include:

  • Shareholder and Director Must be citizen or resident in India
  • Only One Director at a time
  • Nominee for shareholder is must

If you are planning of incorporating a startup which is home run, family run or service oriented you can probably begin with one person company and once you get established you can think of expansion.

2. Private Limited Company

A private limited company is the one with two directors and two shareholders. This is the basic requisite to incorporate private limited company. The maximum number of members in a private limited company can be 200. Company cannot invite general public to subscribe its shares or debentures. A private limited company can

  • Register with MCA as body corporate
  • Business governed by board of directors
  • Limited liability of members
  • Can not accept deposit from Public

People incorporating a startup which involves product, delivery and revolves around mass consumption or even which involves a number of stakeholders involved from the beginning should go for private limited company. This adds credibility to your idea at the launch stage itself.

3. Limited Liability Partnership (LLP)

LLP is a corporate structure that combines the flexibility of a partnership and the advantage of limited liability. Owing to flexibility in structure and operation, it would be useful for small and medium enterprises, in general and for the enterprises in service sector professionals.

  • It is body corporate and legal entity separate from its partners
  • Limited liability of partner.
  • Minimum two partners
  • On LLP, the Partnership Act 1932 not applicable.

There are pros and cons attached but entrepreneurs who are in the process of incorporating a startup which involves further licensing and compliances with other government authorities opt for LLPs. This is mostly a preferred option for startups entering the BFSI sector.

How we can help as an Agency for Setting Up a Business in India

Gapeseed Consulting Pvt Ltd is a financial services company with a team of experts coming from the Accounting and Legal backgrounds. Startups usually have reservations with the set of services, registration protocols etc and they find it complex to execute. We are here to simplify business functions and thereby multiplying the possibilities.

Our set of services include, Incorporation, Accounting, Tax and Company Law compliance, consulting, drafting agreements, Payroll and CFO Services.

Financial Services for Startups

The challenge to startups is not just to manage and grow business, it is also about managing in the right way. Entrepreneurs need advice on regular basis so that all compliances are met right from the day of incorporation of business.
We at Gapeseed Consulting provide virtual CFO Services to support your business. We understand that Startups usually do not hire a senior Chartered Accountant or Finance Professional at initial stage because it is very difficult situation for entrepreneur and Senior Financial Professional to do full time job in Startup. Therefore Virtual CFO Services is win-win situation for both.

Virtual CFO or Interim CFO Services in Delhi from Gapeseed Consulting can offer the follow-ing solutions:

  • Business Plan
  • Investor Relations
  • Financial Analytics
  • Budgeting and forecasting.
  • Cash Flow Management
  • Board & Management Reporting
  • Accounting Team Search
  • Transaction Accounting

Gapeseed Consulting has also launched Financial Services Startup Packages to make it more suitable for the startup requisites.

Allied Services

One of our startup client who will be soon celebrating their first anniversary felt dramatically low at a point when they realized about the compliances and regular taxation norms. Apparently those were nor considered at the planning stage and hence they felt the pressure to perform as per law & guidelines.

Since we had helped them with the Registration process, they asked for our help and Gapeseed Consulting readily deputed our in-house chartered accountant Mr.Jain as the Interim CFO to manage the Liquor Import Compliances for Incorporating a Business in India while setting up a business.

Some of our basic allied services include the management of compliance, taxation and other procedures that include:

  • Tax Deducted at Source- TDS is to be deducted by company at the time of booking or making payment exceeding prescribed limits. TDS to be deposited every month before 7th day of next month. TDS return is to be filed quarterly before 15th of each quarter.
  • Service Tax- Presently Service tax rate is 14%. Service Tax is to be deposited before 6th day of every month by company and before 6th of every quarter in case of individuals. Return is to be filed half yearly.
  • Advance Tax- Advance tax is to be calculated every quarter and to be deposited by company before due date. It is payable before 15th June, 15th Sep, 15th Dec and 15th March.
  • Income Tax Return- Income Tax Return is to be filed annually after accounts are adopted by Board and Audited by Chartered Accountant” – we provide help to startup prepare complete accounts so that auditor can audit without any problem. We provide all information, details required for audit.
  • Transaction structuring/ Opinion – Our experts give opinion on transaction structuring on any matter of accounting, taxation, debt or equity.
  • MCA Filings- Returns to be filed with MCA for shifting of registered office, change in directors, increase in share capital, filing of Board and EGM/AGM Resolutions.
  • RBI matters for filing FCGPR, or any other matter.
  • Drafting Shareholders Agreement and Debenture Agreement for Private Limited Companies.
  • Drafting of contracts, patent and trad mark registration and other services

We hope that this post helped in understanding the launch procedure and also in ascertaining the best suitable option for your startup idea. Our next post will be around the documentation that is required to complete the registration process for a startup or new business.

In case of any query pertaining to startup series or services that we offer, please send in an email to info@gapeseedconsulting.com

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Payroll Services for Startups

Our love for startups is forever increasing. And with our experience of working with them, we have realized that, Startups are natural rule breakers you got to come out of that comfort zone if you want to be the next big thing in the industry.
But there is one area where you wouldn’t want to mess around with the rules and that is payroll and HR. To avoid any legal and financial litigation you must comply with payroll and HR laws. Some of your actions might drive you out of the business as well. Keeping this in mind we offer Payroll services.

Like other business strategy and planning, payroll services for startups need to be taken seriously and keeping our client in mind the following are the important consideration on the basis of which we provide our services.

1. Convenience

Payroll services for Startups should not be a problem. It should be a cake walk that’s easy to do and one that can be done on any computer or mobile device. To achieve these tasks we make sure that our clients aren’t confined to their office or required to phone in hours manually every time they want to run payroll. Having the ability and the technology to run payroll from anywhere in fraction of minutes is something that we focus on to provide our services to our clients.

stration and will also manage it for you with the shared admin rights so that you can keep a tap on how Gapeseed Consulting is managing the Payroll Services for Startups.

2. Set Up

Gone are the days of paper-based payroll system, move on to a more advanced paperless system it would not require an immense learning from your side or big task, time-consuming training sessions. The transition should be smooth, quick, and easy. The software should be simple, straightforward, and well, user friendly to use.

We will provide you the demonstration and will also manage it for you with the shared admin rights so that you can keep a tap on how Gapeseed Consulting is managing the Payroll Services for Startups.

3. Cost Advantage

For many small business owners, cost cutting is a major thing, the payroll services they choose is often based on one thing – cost. But, when they get their monthly invoice, the amount owed can be significantly more than what they expected to pay. Unfortunately, hidden fees are common in this industry, but luckily not all providers “follow the rules.” A payroll provider’s services and pricing structure should be completely transparent so you know exactly what your invoice is going to be based on how many employees you have and the services you select and we assure you to give a transparent service. As we understand that Payroll Services for Startups are managed as they are having small teams and optimism resources.

4. Service Options

Many a times payroll providers just offer few payroll services, where as we offer a whole host of services designed so as to make your job easier. These services include

  • Payroll Accounting,
  • Attendance Register (Controls),
  • Online employee access to payment records,
  • Direct deposit,
  • Wage garnishments,
  • Easy CTC calculations,
  • Compliances,
  • Manage Employee Information Efficiently,
  • Define the emoluments, deductions, leave etc.,

Other Payroll Services for Startups include, Generate Pay-Slip at the convenience of a click, Generate and Manage the Payroll Processes according to the Salary Structure assigned to the employee, Generate all the Reports related to employee, attendance/leave, payroll etc., Manage your own Security.

5. Partners & Integration

You have to stay away from payroll providers who are not willing to partner and integrate with other HR and accounting systems. When a payroll system is easily matched with other types of accounting services, you own a great flexibility, more control, and better results. Similarly, it is important for us to understand small business needs in order to provide the most complete payroll package possible.

In order to achieve these goals, the government has simplified the business registration process as well as the rules that govern the process. Now, entrepreneurs can start a company in India easily. Even, simple licensing application can be done through self-certification or third part certification system. With the integrated online portal and less paperwork system, entrepreneurs do not have to worry about the administration burden and are able to focus more on running the companies. With initiatives like Make in India, Startups have ocean of opportunity and with such a situation Gapeseed Consulting can be a perfect choice for your business to outsource the payroll services.

To know more about the Payroll Services at Gapeseed Consulting, please connect or write to info@gapeseedconsulting.com

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5 Steps for Setting up a Business in India

Startups and India are rhyming well together and 2016 seems to be bringing opportunities in abundance. That makes a perfect reason to bring last post of this year as the ‘5 Steps for Setting up a Business in India’

With Gapeseed Consulting, you can climb the steps smoothly when Setting Up Business in India!!

The current economic scenario of India is growing towards the trend of individuals getting ready to start up their own business enterprises. Opportunities are opening the doors and people are rushing to enter through those doors. Unlike hunting for a job, setting up a business requires a winning idea in the first place. But besides that a lot of groundwork has to come before the actual act of opening up a business. Now, such groundwork includes creating a workable business plan, thorough market research, finalizing funding sources and pinning down the business model. Once you have validated your idea with these steps, it is time to delve into the legalities and paperwork involved in setting up a business in India. And that’s where we enter. We, at Gapeseed provide our clients Business Setup Solution based on a methodology which takes care of approvals, legal compliances, registrations with authorities etc. to provide a ready to operate business setup in shortest time period.

In this post, we will not only guide you with the steps of setting up a business in India processes but also with the tips of how smoothly you can walk past it.

 

Industrial Approval for Business Investment

Although in today’s time setting up a business and investing in India generally do not require any approval. However, in case of some Industries approval is required for setting up business in India. Gapeseed provides services for obtaining approvals from Foreign Boards or Indian Boards (read Reserve Bank of India), as may be required. We also provide services for formulating strategies for mode of business setup i.e. Foreign Branch Setup or Liaison Office setup or Setup of Subsidiary Company as required.

See more at: http://www.gapeseedconsulting.com/blog/liquor-import-compliance-for-setting-up-a-business-in-india/
Incorporation of Your Enterprise

For setting up business in India through limited liability company involves registration with Registrar of Companies under the Companies Act. Foundation of company involves several steps including name approval, digital signature of directors, and preparation of Memorandum of Association etc. Our Business Setup Solution takes care of all the required compliances and procedures for incorporation of a company and endeavours to provide our clients ready to operate business setup as smoothly and as quickly as possible.

 

Get. Set. Register.

A business to be fully functional requires registration with various authorities. For instance, a trading company needs to get registered with Sales Tax/VAT Authorities, Income Tax Department, Excise Department, Custom Department, Service Tax Department, Registration with Shops and Establishment Act etc. Our Business Setup Solution provides services for registration with various authorities immediately after incorporation. This leads to reducing burden from client’s end with matters related to tax, labour and other relevant authorities.

See more at: http://www.gapeseedconsulting.com/resources/

 

Brand yourself and advertise

What’s the point in getting things right if people don’t come to know about your company? Gone are the days when people used to spread the word verbally; Now-a-days one has to find the right kind of customer first and then think of many ways to reach out to them. In order to create an identity, create a logo, and then create a company website and social media profiles to mark your presence and through social media windows spread the word about your brand. You can not only promote your business through digital channels but can get hands-on feedback from your customers which will further help you improve.
Move ahead with your business

Once you start up, you should think of growing your business with each passing day. In order to make profit, you have to be ahead of what you received out of your business yesterday. And to do so you can think of collaborating with more established brands of your genera. You can even reach out to other companies and request them for your business promotion in exchange of a free service, product etc. You can even partner with other lines of business and build a mutual relationship to promote each other’s brands.

Setting up a business can be challenging but if you follow these steps and reach out to us, you can not only set on the path of entrepreneurship smoothly but can make your business more profitable and more successful.

 

Further to this if you seek any further clarity, feel free to write to us on, info@gapeseedconsulting.com or you can also call us at +91-9599444639.

 

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Benefits of HR and Payroll Software

A critical part of any organization is managing the human resource functions and payrolls of employees, whether it’s a small firm or a big business house.

And to manage proper functioning of HR and Payroll procedures, companies require appropriate technology whether hardware or software. It’s often a misconception that small business can do away with such a system but since the net worth of a company and its taxation is affected by the payroll of the employees, data integrity and accuracy is vital as they are subjected to audits from the law of the land. Hence the size of the company doesn’t matter.

What if a small business can’t afford to shell out money on the latest software?

What if making a purchase is going to have a major impact on the balance sheet?

Despite budget restrictions and limited IT resources, small businesses still need to centralize workflows and be efficient. To help you out with such a dilemma, we will not only discuss about the benefits of having standard HR/Payroll software but we’ll also help you pick the best for small business in this post.

 

Benefits for HR and Payroll software to regulate the functioning of HR and Payroll procedures:

Manages Task

With the help of automated software, calculating the payroll of employees gets not only easy but logical programming gives results within few clicks. The task could otherwise get lot complicated if done manually as it involves lot of procedures – calculating the productive hours of the employees, calculating tax, deductions, documentation of employee leaves, attendance etc.

Manages Time

Manual inputs and payroll calculations for each and every employee is often a time consuming process. Whereas the software automated system does the backend calculations and produces periodic reports and pay checks in no time whatsoever.

Adds Accuracy

Manual inputs and management of data is not only time consuming but can also invite errors. Having HR and Payroll software assures that the data is 100% accurate and the data integrity is maintained at all levels. One can rely on the information to make better decisions based upon it.

Safeguards Data

Another advantage or rather benefit for HR and Payroll software is that it has tools which restrict the accessibility to the software. Once can set up visibility parameters to allow selected persons to access the data which reduces the risk of misuse of critical information.

 

Key HR/Payroll Software Features

HR/Payroll software can help to increase the productivity of small businesses by automating administrative tasks, record-keeping and by giving HR coordinators tools to find and keep the best talent. There are many different ways to package standard software. Beyond deployment models, there are three primary classes of HR software structured around usage:

    • Core HR: Helps businesses perform the administrative functions of managing a workforce—payroll, benefits administration, time and attendance tracking, workforce planning, and regulatory compliance. Employees can also access their work-related data and enter updates and requests which form an integral feature for most core systems.
    • Strategic HR: This solution mostly addresses recruitment, performance management, training and development, and succession planning. Some solution may even be customized to address a specific aspect of talent management, such as the hiring process.
    • Integrated HR suites: This solution provides end-to-end functionality across most or all areas of management including administrative aspects as well as recruitment, talent management, and e-learning of management systems. Some product suites are sold in modules, so one can purchase them according to the specific need of the company.

The intention of the post was to give you a brief idea of how important it is to have specific standard software for the better functioning of a small business and also the benefits for HR and Payroll software. If you want us to find the right solutions for your set of business, write to us and we would address your query in no time. You can even write to us if you want to avail our HR, Accounting or any other service.

For more information on Payroll Software, feel free to reach us on, info@gapeseedconsulting.com or call +91-9599444639/+91-9599444630

 

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PAYROLL  ACCOUTING

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Outsourced Accounting Services

Payroll Services for Startups

Social Security Systems for Effective Payroll Management

Why Audits are important for business?
 

 

Gapeseed’s Accounting Services for Small Businesses

Small businesses often face the challenge of growing their business and having to cope with rising costs. It takes a lot of effort to run a small business successfully wherein the time, resource and energy must be optimally used. It is also crucial to ensure proper accounting practices for any particular business, regardless of its industry. Once considered to be done by huge companies, now-a-days accounting is a fundamental necessity for any business, be it small or big.

Apart from handling business challenges, financial challenges can become too great to handle without expert help. Reasons could be many – May be the company’s accounting software isn’t providing the type of data required to grow the business, one may be facing trouble while switching from cash to accrual accounting, may be someone wants to better the financial function of the business. Whatever the reasons are, for complete solutions you can certainly rely on Gapeseed’s Accounting Services.

 

What is special with Gapeseed’s Services?

Our primary goal is to make accounting hassle free for our small business and start-up clients. Our expertise as accounting professionals has helped hundreds of small business clients to achieve their financial goals and we work hard to help all of our clients succeed. We offer a full range of accounting services and create custom accounting solutions if need be for businesses based on the specific accounting needs. Our solutions help our clients save time and money, so they can utilize those resources on other aspects of your business. And not just bookkeeping, payroll or auditing services, depending on a particular need, we even work towards achieving financial goals for our clients and their business.

4 reasons to consider Gapeseed’s Accounting Services for Small Businesses:

    • Pace up productivityAccounting is a task that requires long hours and accuracy on the job. If you opt for hiring a small business accountant in-house, it might add an additional cost burden. Whereas if you hire Gapeseed, we will not only provide expert accounting but we are always willing to put in the extra hours to increase productivity and efficiency of businesses which are small & settling up.
    • Keep your books clean & up to dateMaintaining an accurate book of accounts is important to any small business as it necessary to keep a check on the expenses and cash inflow. And you need expertise in order to maintain an error-free bookkeeping operation. Our accounts clean up services include tallying account items with actual expenses and inflows, classifying items in the correct category and removing any dead transactions. With such a systematic record keeping like ours, you can not only maintain accuracy but lessen your burden during the financial year end and tax seasons.
    • Keep your books in safe handsBookkeeping in small businesses is often seen as chore that must be given good amount of time and importance in order to stay in business. Gapeseed can relieve you of this chore by taking up all the painstaking work of maintaining your bookkeeping operations. Right from maintenance of ledgers to reconciliation of accounts to preparing cash flow statements, we will handle them all.
    • Grow your small business with usMany entrepreneurs who start their own small businesses start out by wearing the accountant’s hat. With simple bookkeeping software coming handy, one might even keep a good track of business’ finance. But when the business starts growing, it no longer appears to be an easy task. It totally makes sense to hand over responsibilities for taxes, accounting, and the rest of the financial functions to specialists. Gapeseed can help your business not only with tax returns but with long term tax planning, business planning, networking, and even personal tax planning.

If four reasons aren’t good enough and if you want more, you can visit us to get the details of Gapeseed’s Accounting Services for small businesses or call us on +91-9599444639 | 9599444630. We at Gapeseed are purposed to empower our clients through our services as strategic growth partners.

 

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Remote Staffing Solutions For Hassle Free Expansion

Now-a-days more and more companies, from small to big are moving into remote staffing.

Remote staffing is all about hiring remote employees at a fraction of cost compared to in-house employees. It not only helps to save money but helps to gain global exposure. The reasons why business enterprises are looking for such services revolve around mostly on economic factors. Remote Staffing reduces the need for office space hence induces cost cutting, adds on to flexibility in work schedules, reduces hassle with the usage of technology etc. Whether a company is a start-up or an established one, there’s certainly more ground for improvement with regards to remote staffing services. Let’s discuss the top reasons why one should consider taking advantage of remote staffing innovation.

Time Management

A team of virtual staff helps to fulfill tasks at a limited frame of time. If a certain assignment needs to be completed, one can just assign a deadline with a level of urgency and can expect it to be completed within the allotted time frame.

Delegating Tasks

An enterprise can be overburdened with many projects at one time. And in such instances remote staffing comes as a rescuer. It not only saves on time but it’s a cost friendly way of acquiring results in the desired time.

Easy Hiring

Hiring employees is a meticulous process of filtering the right candidate that involves a lot of time. In order to deliver urgent projects within a short span of time, one may not follow that process to pick the right candidate. This can be eliminated if one opts for remote hiring since an outsourcing company can take care of this easily and in no time.

Remote Staffing Services by Gapeseed

The need for a remote staffing team arises when you notice that you no longer enough time and space at work. Hiring such a team is the perfect solution for each time you get overwhelmed by the numerous tasks that sometimes need to be done simultaneously. That’s where Gapeseed’s services save you. Gapeseed Facility and Management Services offers Remote Staffing, Temporary & Permanent Solutions to International or national businesses expanding in India.

Gapeseed offers a low cost human resource outsourcing solution to ease small and mid-sized businesses by introducing an extension to the traditional form of outsourcing i.e. remote staffing. The solution lets you delegate most of the duties to a competent virtual team which further gets you time to pursue other fields to focus on like other tasks, side projects etc.

Our Remotely Managed Services are available for Foreign Corridors, MNCs expanding to India and national corporations which are expanding or intend to expand in various states of India.

Offshore Remote Staffing Services

Gapeseed acts as a foreign subsidiary for its clients. As per the requirement, the client can simply hire one remote employee on part-time employee leasing basis or a team on full-time leasing basis. This facility is like an extension to your own office. The dedicated offshore remote staffing facility leverages Gapeseed’s technical infrastructure, processes and execution capabilities.

Employee Monitoring Services

Gapeseed Consulting provides its clients with daily range of reports designed to allow them to easily monitor remote staff’s productivity. The reports are logged into a web-based application systematically so that the offshore employer/client can run reports on any range of dates. Through these reports the client can find out the status of the job assigned. This further helps the companies to calculate the efficiency of each low cost offshore employee and compare them with the rest of the in-house employees.

Data Security Services

With Gapeseed’s advance technology system, management tasks by quantifying data, processing them and keeping them safe gets easier. The system is potent enough to never give a chance to employers/clients to complain about data loss. Not only just the security of the data, accessing restrictions can be set through the system, performances can be monitored and our clients get the entire charge to maintain exclusive control and access to the system.

For more information on Remote Staffing Solutions For Hassle Free Expansion, feel free to reach us on, info@gapeseedconsulting.com or call +91-9599444639/+91-9599444630

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Social Security Systems for Effective Payroll Management

Gapeseed Facility & Management Services is a vertical of Gapeseed Consulting where in we provide HR solutions – right from staffing, recruitment, training and payroll management.

As we progress with our clients with their staffing & payroll processes – we constantly felt the need to explain the Social Security

Systems for effective Payroll Management.

The social security system in India is controlled by the government and applies to only a small portion of the popular.

The social security system includes not just an insurance payment of premiums into government funds, but also lump sum employer obligations. It is significant to understand the Social Security Systems for effective Payroll Management.

Generally, India’s social security schemes cover the following types of social insurances:

PENSION

The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 (EPF & MP Act) which applies to specific scheduled factories and establishments employing 20 or more employees and ensures terminal benefits to provident fund, superannuation pension, and family pension in case of death during service. Separate laws exist for similar benefits for the workers in the coal mines and tea plantations.

HEALTH INSURANCE AND MEDICAL

The Employees’ State Insurance Act, 1948 (ESI Act) which covers factories and establishments with 10 or more employees and provides for comprehensive medical care to the employees and their families as well as cash benefits during sickness and maternity, and monthly payments in case of death or disablement.

MATERNITY

The Maternity Benefit Act, 1961 (M.B. Act), which provides for 12 weeks wages during maternity as well as paid leave in certain other related contingencies.

GRATUITY

The Payment of Gratuity Act, 1972 (P.G. Act), which provides 15 days wages for each year of service to employees who have worked for five years or more in establishments having a minimum of 10 workers.

DISABILITY

The Employees’ Compensation Act, 1923 (WC Act), which requires payment of compensation to the workman or his family in cases of employment related injuries resulting in death or disability.

The payroll management system differs at different levels depending upon the industry, the type of business entity, the state rules & regulations which applicable to the company etc. Here are the details on the following Social Insurances as applicable in the Payroll Management Systems of almost all large corporate houses.

PENSION

The Employees’ Provident Fund Organization, under the Ministry of Labor and Employment, ensures superannuation pension and family pension in case of death during service. Presently only about 35 million out of a labor force of 400 million have access to formal social security in the form of old-age income protection. Out of these 35 million, 26 million workers are members of the Employees’ Provident Fund Organization, which comprises private sector workers, civil servants, military personnel and employees of State Public Sector Undertakings.

The schemes under the Employees’ Provident Fund Organization apply to businesses with at least 20 employees. Contributions to the Employees’ Provident Fund Scheme are obligatory for both the employer and the employee when the employee is earning up to INR 6,500 per month and voluntary when the employee earns more than this amount.

If the pay of any employee exceeds this amount, the contribution payable by the employer will be limited to the amount payable on the first INR 6,500 only. Contributions should be made to the Employees’ Provident Fund Organization on an annual basis. The Employees’ Provident Fund Organization includes three schemes:

The Employees’ Provident Fund Scheme, 1952
The Employees’ Pension Scheme, 1995
The Employees’ Deposit Linked Insurance Scheme, 1976

  • The Employees’ Provident Fund Scheme is contributed to by the employer (1.67-3.67 percent) and the employee (10-12 percent).
  • The Employee Pension Scheme is contributed to by the employer (8.33 percent) and the government (1.16 percent), but not the employee.
  • • Finally, the Employees’ Deposit Linked Insurance Scheme is contributed to by the employer (0.5 percent) only.

 

Four main types of pension (all monthly) are offered:

  • Pension upon superannuation or disability;
  • Widows’ pension for death while in service;
  • Children’s pension; and
  • Orphan’s pension.

In addition, there are separate pension funds for civil servants, workers employed in coal mines and tea plantations in the State of Assam, and for seamen.

HEALTH INSURANCE AND MEDICAL

India has a national health service, but this does not include free medical care for the whole population. The Employees’ State Insurance Act creates a fund to provide medical care to the employees and their families, as well as cash benefits during sickness and maternity and monthly payments in case of death or disablement for those working in factories and establishments with 10 or more employees.

In case of sick leave, the employer will pay half salary to the employees covered under the Employee’s State Insurance Act.

DISABILITY

The Workmen’s Compensation Act requires the employer to pay compensation to employees or their families in cases of employment related injuries resulting in death or disability.

In addition, workers employed in certain types of occupations are exposed to the risk of contracting certain diseases, which are peculiar and inherent to those occupations. A worker contracting an occupational disease is deemed to have suffered an accident out of and in the course of employment and the employer is liable to pay compensation for the same. Occupational diseases have been defined in the Workmen Compensation Act in parts A, B and C of Schedule III.

Compensation calculation depends on the situation of occupational disability:

a. Death: 50% of the monthly wage multiplied by the relevant factor (age) or an amount of INR 80,000/- whichever is more.

b. Total permanent disablement: 60% of the monthly wage multiplied by the relevant factor (age) or an amount of INR 90,000/- whichever is more.

c. The Compensation Act also includes stipulations for partial permanent disablement and temporary disablement (total or partial).

GRATUITY

For establishments with ten or more employees, the Payment of Gratuity Act requires the payment of 15 days of additional wages for each year of service to employees who have worked at a company for five years or more.

MATERNITY

The Maternity Benefit Act requires an employer to offer 12 weeks wages during maternity as well as paid leave in certain other connected contingencies.

Every woman shall be entitled to, and her employer shall be liable for, the payment of maternity benefit at the rate of the average daily wage (the average of the woman’s wages payable to her for the days on which she has worked during the period of three calendar months immediately preceding the date from which she is absent on account of maternity), including the day of her delivery and for the six weeks immediately following that day.

The maximum period for which any woman shall be entitled to maternity benefit shall be 12 weeks, six weeks up to and including the day of her delivery, and six weeks immediately following that day.

During the one month proceeding the period of six weeks before her expected delivery or any period during that six week period for which she does not take a leave of absence, no pregnant woman shall be required by her employer to do any work that is arduous, involves long hours of standing or is in any way likely to interfere with her pregnancy or otherwise adversely affect her health.

Any woman working in an organization and allowed to maternity benefit may give written notice to her employer stating that her maternity benefit and any other benefits to which she may be entitled may be paid to her or to anyone she nominates in the notice, and that she will not work in any establishment during the period for which she receives maternity benefit.

On receipt of the notice, the company shall authorize the employee to absent herself from the company until the end of six week period following the day of her delivery.

The maternity benefit for the period preceding the date of her expected delivery shall be paid in advance by the company to the employee after having confirmed that she is pregnant. The amount due for the subsequent period shall be paid by the employer to the employee within 48 hours of the child’s birth.

In addition to the above, the act states that no company shall deliberately employ a woman in any organization during the six weeks immediately following the day of her delivery or her miscarriage. No company shall compel its female employees to do tasks of a laborious nature or tasks that involve long hours of standing or which in any way are likely to interfere with her pregnancy or the normal development of the foetus, or are likely to cause her miscarriage or otherwise adversely affect her health.

It is very important to understand the Social Security Systems for Effective Payroll Management. The latter should be developed keeping in consideration the former.

Payroll Management Systems are also significant for SMEs and Small Business for transparent and influencing Employer Branding. For better understanding on our Payroll Services, you can download the Free Guide to Payroll Management.

Get in touch with us now at info@gapeseedconsulting.com or call up: +91-9599444630/9 to know more.

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Outsourced Accounting Services

Outsourced Accounting Services: Turn on the key systems to enhance the growth of your business.

Whether you deal in manufacturing goods or own a chain of hotels, whether you specialize in fashion retail or any other business, your company has to find a way to manage its systems.And by systems we mean, the two most important ones – technology and accounting. You can’t stop moving forward and expect your business to move ahead. In order to see progress in its growth, you will have to keep your system updated. Relying on outdated technology and accounting system can impact your business’ bottom line. Does outsourcing accounting functions or technology consultation make sense for your business? The answer can be confusing but not when you know the advantages of hiring an outside company to manage your needs!

Advantages of Outsourced Accounting Services

Economic Savings

A major advantage associated with outsourced accounting services is the cost-effectiveness of the services. When you outsource, not only can you match the work hours/amount of projects to your needs, but also you can avoid employee expenses like insurance, payroll taxes, unemployment taxes, etc. You can save on providing a work space or system to the employee. A huge amount can also be saved up on operational costs and channelized towards the funding of core business processes.

Specialized Services

When you hire a service provider you can be confident enough that they will offer you nothing but specialized services. With perfect resources for handling projects methodically, they indeed become an integral part of your business. Also, with the growing competition, any service provider constantly hones their skills to keep up with the industry, thereby increasing the quality of the services. This means when you hire one of the providers, you can trust that your accounting will be handled well.

Accomplish Accuracy

Outsourcing accounting services can be quite beneficial when it comes to generating accurate results. This, in turn, ensures better management of back office functions. The accuracy in fact helps to control any possible fraud within or outside the organization. The service providers are accountable for every transaction processing as well as quality and accuracy control.

Advantages of Outsourced Accounting Services

Improve Efficiency

Technology has grown to an all-encompassing status within nearly every industry. Consumers have adopted an always-connected lifestyle and businesses have kept up with demand by becoming connected as well. It’s this connection between businesses and their customers which drives modern consumerism and those with upgraded technology can maintain this connection strongly. With proper services from providers, this continually advancing technology can be harnessed to push your business ahead of those who don’t utilize it effectively.
End-to-end solution

Choosing business or accounting software isn’t any easy and different business have different needs. Whatever your needs may be, expert from the industry can easily help you with the accounting and the technology experience, making it easy for you to choose, install and maintain your company’s software. From start to finish, the consultants can help you determine which services you need to optimize the performance of your technology systems, whether you need assistance with installing accounting software and training your staff or turn-key programming and custom networking solutions.

Time Saving

Think of the weekly hours it will take to manage in installing software—taking away from the time you can spend on business and relationship building activities more directly aligned with the growth of the company. Outsourced Accounting services improve this need of time optimization. You don’t have to deal with all the complexity involved with technological systems because that’s what the service provider will handle. That means you get time to focus on business & revenues that matters the most.

So, if you have understood the significance and benefits of outsourced accounting services for technology and business accounting, it’s time you get in touch with us. Gapeseed Consulting offers a full range of services designed to keep your critical business systems working for you. Our certified information technology and finance consultants can help you determine which services you need to optimize the performance of your technology or accounting systems, whether you need assistance with installing accounting software or custom networking solutions among other services. Irrespective of the industry, we offer personalized services based on the requirements of our clients.

Whether you are seeking a partner/an associate for Outsourcing Accounting Services or you want to update the existing accounting system by bringing in technological know how , get in touch with us.

Get in touch with us now at info@gapeseedconsulting.com or call up: +91-9599444630/9 to know more.

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